“The Institute of Chartered Accountants in Ireland (ICAI) said today that the case for a common corporation tax rate of 12.5% across the island of Ireland is stronger in the aftermath of the publication of the Varney Review of Tax Policy in Northern Ireland. Their comments were made at a gathering of senior business and political figures in Belfast at the Europa Hotel which had assembled to discuss the case for a special rate for Northern Ireland.

ICAI has called for an enquiry by the Northern Ireland Affairs Committee, in Westminster, to question the conclusions of the Varney Report. ICAI argues that the Report lacks focus, clarity and practical solutions for Northern Ireland. The Review team must be challenged on how they arrived at their conclusions.

Today ICAI confirmed that they have been invited to give evidence before the NI Affairs Committee on Wednesday 27th February 2008.

The ICAI sponsored gathering held today offered leading business and political figures the opportunity to respond to and discuss the Varney Review. They were addressed by Sir George Quigley Chairman of the Industrial Task Force, Brian Keegan ICAI Director of Tax and Eamonn Donaghy Chair of the ICAI Northern Ireland Tax Committee. Speaking at the gathering Eamonn Donaghy Chair of the ICAI NI Tax Committee said that:

“The findings of the Review were not what we had hoped, but everything we had feared — no innovation, no proposals for change. Such an outcome only dilutes the attractiveness of Northern Ireland as a destination for Foreign Direct Investment. We believe the report is flawed, and that its flawed arguments only strengthen the case for a lower rate of corporation tax here. It is vital that our decision makers in Government have the correct analysis available to them as they plan for the future success of Northern Ireland.”

“We meet today to generate new ideas and to maintain our campaign's momentum. We meet so that the opportunity to boost the Northern Ireland economy is not missed. ICAI is pleased to have the opportunity to give evidence before the Northern Ireland Affairs Committee in Westminster. This not only presents an appropriate way through which we can keep this issue on the agenda but also presents an excellent chance to seek the clarification we desire on the Reports findings.”

ICAI Director of Taxation, Brian Keegan said:

“ICAI is an all Island organisation, and our members have first hand knowledge and experience of how a low Corporation Tax rate contributes to the economy. We want to bring this knowledge and experience to the debate on Northern Ireland tax policy, and correct the points overlooked in the Varney Review — the impact of tax rates on Foreign Direct Investment and how lower business taxes generate prosperity and better results for the Exchequer overall.”

Sir George Quigley, Chairman of the Industrial Taskforce, has long been a leading proponent of the case for a 12.5% rate of Corporation Tax for Northern Ireland. He commented:

“The Varney Review has failed to recognise the vital importance of a lower corporation tax to Northern Ireland's competitiveness, which would allow us to attract our fair share of quality jobs and help reduce our economy's dependence on the Public Sector. He has signally failed to appreciate how tax-competitiveness would enable us to capitalise on all the other characteristics which make us a very attractive host location for investment.

In dismissing the potential of a reduced Corporation Tax rate, Sir David Varney has largely disregarded the actual experience of Ireland. He also neglected to give any weight to the views of those who spearheaded the Republic's drive for foreign investment as well as the impressive range of experienced business personnel throughout the island and beyond it who contributed to the Review process.

Because he ignored the advice he received on how the introduction of the lower tax rate should be managed, the model he has produced of how tax revenues would be affected cannot be relied upon and requires radical revision.”